VR Group: Increase in railway logistics transport volume and decrease in long-distance passenger volume

• Rail Logistics' transport volumes continued growing.
• In passenger traffic, long-distance passenger volume saw a decrease
• Turnover for Infrastructure Engineering fell

Transported tonnes rose by a third over the previous quarter. Road Logistics transport volume decreased. Q3 turnover for Logistics totalled 105.1 (108.6) MEUR, down 3.2% from the same period in the previous year. Operating profit rose over the previous year, totalling 7.2 (6.8) MEUR. Logistics' transport volume dropped 1.4% from the reference period. The transported tonnes totalled 10.2 (10.4) million.

The Rail Logistics transport volume increased 4.2% from the beginning of the year. There has been growth in both domestic and Eastern traffic. Thanks to strong growth, Rail Logistics' market share of all transports is expected to increase in 2014.

Long-distance rail travel fell

In Q2, the turnover for passenger traffic fell 2.1%, totalling 138.7 (141.6) MEUR. Weak sales in long-distance traffic had a particularly strong impact on this decline in turnover. Tighter competition, a challenging economy and the current situation in Russia are reflected in lower passenger numbers and average ticket prices, despite pricing campaigns. The weak rouble has affected traffic between Finland and Russia, with passenger volume dropping significantly in Q3.

A total of 25.0 (23.4) million trips were made by rail and road. The number of trips taken increased 6.6% over the previous year: the number of road trips taken increased 29.4% with the introduction of newly acquired lines, but the number of rail trips taken dropped 1.4%. Passenger traffic operating profit totalled 10.3 MEUR, down from the reference period (13.5).

Infrastructure Engineering order book remained strong

Turnover for Infrastructure Engineering fell 16.6%, down from the reference period, totalling 93.1 (111.7) MEUR for the quarter. The order book remained strong. The operating profit for Infrastructure Engineering amounted to EUR 12.5 (15.0) million.

Operating profit for the year on a par with the previous year

In Q3, turnover for VR-Group totalled 348.9 (382.5) MEUR. Comparable turnover decreased by 7.0 per cent. The Q3 operating result, 30.7 MEUR, also fell below the comparable result for the previous year (41.6). Earnings Before Interest and Taxes (EBIT) for Q3 totalled EUR 24.0 (31.6) million.

The comparable operating profit for the entire year is expected to remain at last year's level and turnover is expected to decrease. Growth in long-distance passenger traffic sales and the economic situation in Russia have had a particular impact on the lack of certainty in forecasts.